The following incentives are granted to EPZ companies

• Tax benefits:-

  • 10 year corporate income tax holiday and a 25% tax rate for a further 10 years thereafter (except for EPZ commercial enterprises)
  • 10 year withholding tax holiday on dividends and other remittances to non-resident parties (except for EPZ commercial licence enterprises)
  • Perpetual exemption from VAT and customs import duty on inputs – raw materials, machinery, office equipment, certain petroleum fuel for boilers and generators, building materials, other supplies. VAT exemption also applies on local purchases of goods and services supplied by companies in the Kenyan customs territory or domestic market. Motor vehicles which do not remain within the zone are not eligible for tax exemption.
  • Perpetual exemption from payment of stamp duty on legal instruments
  • 100% investment deductionon new investment in EPZ buildings and machinery, applicable over 20 years .

     

• Easier Procedures and Smoother Operations:-

  • Operation under essentially one licence issued by EPZA. EPZA seeks to minimize bureaucracy and administrative procedures and facilitate licensing, set up and operations of EPZ projects. This includes exemption from compliance with various laws such as the Import, Export and Essential Supplies Act, the Standards Act, the Industrial Registration Act, the Factories Act, and the Statistics Act. The EPZ Authority acts as the primary licensing and regulatory agency on behalf of the government, and collects the necessary information and data from the companies
  • Rapid Project approval and licencing within 30 days (with exception of projects requiring environmental licence from National Environmental Management Agency NEMA)
  • No Exchange Controls –liberalised foreign exchange regime and easy repatriation of capital and profits, access to foreign currency accounts, domestic and offshore borrowing.
  • Onsite customs documentation and inspection by Customs Staff. All zones have a resident Customs office for on-site customs documentation and clearance. A Senior Revenue Officer is attached to the EPZA management to assist in all matters relating to customs and excise.
  • Unrestricted investment by foreigners
  • One Stop Shop service for facilitation and aftercare – EPZA Investor Support Division assists new companies and provide help and advice in the areas of staff recruitment, labour regulations, work permits, import-export logistics, application for utility connections, registration with tax authorities etc.

• Physical Infrastructure Benefits:-

  • All zones are built to exacting international standards and provide facilities suited to export production
  • Serviced land and ready factory buildings are available for sale or lease to licensed EPZ companies. Water, sewerage, electricity, all weather roads and an illuminated perimeter fence or wall are standard requirement for zones.
  • Zone developers provide 24 hour security, street lighting, landscaping and street cleaning services in the zones. Private garbage collection firms are retained do dispose of normal office waste.
  • Office premises and storage warehouses are available for lease in most zones.